Accounting tips for small businesses

If you are a business owner your life is undoubtedly packed with highs and lows and there are probably lots of things you have learned and are continuing to learn on your journey. If you are running a small business or considering setting up a small business, CHW Accountants gives some top tips to help ensure your success.

Don’t let it get personal

Make sure that you separate your personal and business finances. Running a small business will undoubtedly bring about changes to your everyday life. If you were previously an employee, your income and other funds would have been held in a personal account, whereas being self-employed or a limited company owner will bring your business based finances into the mix.

Having a different bank account for business transactions is essential not only for organisation but also for avoiding stress and complications when it comes to tax deadlines.

If you don’t maintain separate personal and business bank accounts all aspects of book keeping can become confusing, whereas having all your business transactions in one account can make life very simple. Invoicing, tax returns and bookkeeping will all become a bit of a nightmare if you have to sift through all your personal transactions to identify your business transactions.

Deadlines

Be aware of deadlines – be it Companies House or HMRC, and stick to them. An impending tax deadline can be stressful, to say the least. HMRC paperwork which have been filled out incorrectly or missed the deadline altogether will result in late fees and fines, neither of which are great news for a small business or sole trader with a tight budget. Plus, the longer it takes you to send your tax return beyond the deadline, the more penalties and interest which will be due as a result of the delight of daily charges.

An accountant for self-employed and small businesses might come in handy. You can be assured that they will not miss important deadlines and that your tax return will arrive at the HMRC as a well organised, accurate depiction of the accounts of your business.

Be software savvy

Embrace accounting software – there are many cloud based accounting software solutions in this digital age. Accounting software provides the ideal digital tool to keep your incomings, outgoings and taxes organised and by using accounting software it’s an ideal way to give you more time to focus on other aspects of your business which could potentially increase your profits.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

DID YOU FIND THIS USEFUL?

Share it with your network:  

Want more great content?
Sign up to our newsletter

Follow us

Tweets by @CHW-accounting

CHW-Accounting
@chw-accounting


Twitter: chw_accounting

WHAT'S THE NEWS?

Grab a biscuit and a brew and read our latest news.

12 April 2019

Claiming back VAT on a vehicle purchase

by

You can usually reclaim the VAT paid on goods purchased for use in your business. However, with vehicles these often include an element of personal or private use. We explain the rules regarding reclaiming VAT on vehicle purchases.


Read more >

1 April 2019

Loans to employees – what you need to know

by

Whilst a business is perfectly entitled to loan money to employees or relatives, there can be tax implications if it does.  Here’s our brief reminder of those implications.


Read more >

28 March 2019

Guide to Payroll Changes from April 2019

by

If you are an employer there are several payroll changes which come into effect from April 2019 of which you should be aware.


Read more >

20 March 2019

Did you know – Uninhabitable properties are not liable...

by

Since April 2016 an additional 3% stamp duty charge has been imposed on buyers purchasing a second home. Irrespective of the circumstances. However, following a recent…


Read more >

6 March 2019

How to file your Company Tax Return and pay...

by

Before you can pay any Corporation Tax you owe, you will need to complete your Company Tax Return. CHW guides you through what you need to…


Read more >

YOUR CHALLENGES

No matter what your challenge is, we’ve probably dealt with it before.



Need an Accountant?

Get in touch >


Need an Accountant?

Get in touch >


Tax issues?

Find out more >


Tax issues?

Find out more >


Trying to grow your business?

We can help >


Trying to grow your business?

We can help >


Managing cashflow?

We can help >


Managing cashflow?

We can help >


Starting a business?

We can help >


Starting a business?

We can help >


Looking for funding?

Need help with funding? >


Looking for funding?

Need help with funding? >


Buying or selling a business?

We can help >


Buying or selling a business?

We can help >


Adopt the cloud?

We can help >


Adopt the cloud?

We can help >


What else can we do for you?

We can help >


What else can we do for you?

We can help >
CONTACT US

Get in touch, no hard sell, just a brew, a biscuit and a chat.